Independent Fund Administration Services
April 25th, 2009
A hedge fund’s management team is generally concerned with the essentials of operating the fund such as raising capital, selecting and managing investments and developing client relationships. However, there are many other important tasks that are often outsourced to fund administrators.
A fund administrator fills a crucial role by servicing clients and providing additional support both administratively and operationally. A fund administrator also takes care of some of the more tedious aspects of the business such as preparing for taxes and potential audits, and providing compliance services so that the fund does not violate any laws and regulations.
A hedge fund manager has to decide between taking on all of the duties necessary in administering a fund or simply outsourcing these responsibilities to a fund administrator. If a hedge fund manager chooses to forego hiring a fund administrator he must hire a significantly larger support staff that is capable of performing each of the various duties and paying each employee’s salary plus benefits. The larger staff also requires increasing infrastructure including a bigger office space, and adding the necessary hardware and software. Additionally, the manager becomes directly responsible for ensuring the fund is in full compliance with laws and regulations.
On the other hand, if the manager chooses to hire a fund administrator all these duties are delegated to the administrator. The fund administrator is then responsible for hiring and paying the staff and making sure that the fund is not violating any rules or regulations.
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
Source: Hedge Co
